Exhibit 12

EX-12 8 dex121.htm EXHIBIT 12 Exhibit 12

Exhibit 12

SPRINT NEXTEL CORPORATION

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND RATIO OF EARNINGS TO

COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS


	For the Nine Months Ended September 30,						For the Years Ended December 31,
	2006			2005			2005			2004			2003			2002			2001
	*(in millions)*
Earnings
Income (loss) from continuing operations before income taxes	$	1,053		$	1,271		$	1,291		$	(3,244	)	$	(2,149	)	$	(1,173	)	$	(4,047	)
Capitalized interest		(66	)		(31	)		(53	)		(56	)		(58	)		(88	)		(108	)
Net losses (earnings) in equity method investees		1			(114	)		(107	)		41			79			120			175

Subtotal		988			1,126			1,131			(3,259	)		(2,128	)		(1,141	)		(3,980	)

Fixed charges
Interest charges		1,240			927			1,347			1,274			1,414			1,458			1,247
Interest factor of operating rents		473			295			450			347			360			388			368

Total fixed charges		1,713			1,222			1,797			1,621			1,774			1,846			1,615

Earnings (loss), as adjusted	$	2,701		$	2,348		$	2,928		$	(1,638	)	$	(354	)	$	705		$	(2,365	)

Preferred stock dividends paid		2			5			7			7			7			7			7
Total fixed charges		1,713			1,222			1,797			1,621			1,774			1,846			1,615

Total fixed charges and preferred stock dividends		1,715			1,227			1,804			1,628			1,781			1,853			1,622
Ratio of earnings to fixed charges		1.58			1.92			1.63			—	⁽¹⁾		—	⁽²⁾		—	⁽³⁾		—	⁽⁴⁾

Ratio of earnings to combined fixed charges and preferred stock dividends		1.57			1.91			1.62			—	⁽¹⁾		—	⁽²⁾		—	⁽³⁾		—	⁽⁴⁾

⁽¹⁾

Earnings, as adjusted, were inadequate to cover fixed charges and fixed charges and preferred stock dividends by $3.3 billion in 2004.

⁽²⁾

Earnings, as adjusted, were inadequate to cover fixed charges and fixed charges and preferred stock dividends by $2.1 billion in 2003.

⁽³⁾

Earnings, as adjusted, were inadequate to cover fixed charges and fixed charges and preferred stock dividends by $1.1 billion in 2002.

⁽⁴⁾

Earnings, as adjusted, were inadequate to cover fixed charges and fixed charges and preferred stock dividends by $4.0 billion in 2001.

Note:

The ratios of earnings to combined fixed charges and preferred stock dividends were computed by dividing fixed charges and pre-tax earnings required to cover preferred stock dividends into the sum of earnings (after certain adjustments) and fixed charges. Fixed charges include interest on all debt of continuing operations, including amortization of debt issuance costs, and the interest component of operating rents. Pre-tax earnings required to cover preferred stock dividends are calculated by dividing one less our effective income tax rate into preferred stock dividends. Earnings included Income from continuing operations before income taxes, plus (minus) net losses (earnings) in equity method investees, less capitalized interest.